HUL Eyes Volume-Led Growth; Expects Recovery from November

Hindustan Unilever Ltd. will focus on volume-led revenue growth in the coming quarters, Managing Director and CEO Priya Nair said at a press briefing. She said the company is “obsessed” with driving growth through higher volumes rather than price increases.
Nair said HUL expects volume growth to pick up from November once the impact of recent GST cuts on inventory stabilises. The company plans to boost long-term volume growth by segmenting consumers based on spending power, investing in quick commerce, making its brands “modern and youthful”, and scaling up high-growth brands.

Price hikes will be “gradual” as the focus shifts to driving higher sales volumes, Nair said. Within the foods segment, she expects a recovery in the tea business amid lower commodity prices compared to last year, while the condiments portfolio led by Kissan will remain a key focus area.

Nair added that demand for wellness and nutrition products remains strong. “There is a clear consumer trend on wellness and nutrition, and Horlicks is extremely well placed to advance,” she said.

Chief Financial Officer Niranjan Gupta said the Minimalist brand, acquired two quarters ago, grew at “very strong” double-digit rates in the first half of the fiscal year. HUL plans to expand Minimalist into the body and hair segments, strengthen its offline presence, and leverage HUL’s network to grow in international markets. Gupta added that the company is seeing “early green shoots” in Minimalist’s growth and profitability.

Earlier in the day, HUL reported its September-quarter results, with revenue rising marginally to ₹155.85 billion and net profit up 3% year-on-year at ₹26.90 billion. The home care segment saw a slight revenue dip of just over 1% to ₹5.67 billion, which Gupta attributed to lower product prices.